2026 (1) TMI 941

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....ion 143(3) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') relating to the Assessment Year 2011-12. 2. Brief facts of the case is that the assessee is a company engaged in manufacture of basic and fine chemicals. For the Asst. Year 2011-12, assessee filed its Return of Income declaring total loss of Rs. 34,26,57,814/-. The return was processed u/s. 143(1) on 27- 01-2012 and then selected for scrutiny assessment. 2.1. On verification of the profit & loss account, the Assessing Officer noticed that the assessee has debited Rs. 1,88,37,071/- on account of sales commission. The assessee was asked to furnish details of selling and distribution expenses of Rs. 321.31 lakhs, nature of expenses and ledger copy of each head ....

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....tary evidences that the expenses claimed were related to its business and the parties have actually provided/rendered some services to the assessee for which the payment was made. (ii) The appellant craves leaves to add, modify, amend or alter any grounds of appeal at the time of, or before, the hearing of appeal. 5. Ld. Sr. D.R. appearing for the Revenue in support of its grounds of appeal submitted that the Addl. CIT(A) erred in deleting the disallowance of commission expenses without verifying the documentary evidences of the commission expenses claimed by the assessee, therefore requested to uphold the disallowance. 6. Per contra, Ld. Counsel appearing for the assessee submitted before us a Paper Book which contains the r....

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....more. Therefore with a view to safeguard exposure, to recover payment in tandem with planned cash flow, the industry as a whole is operating through strong dealership network on Pan India basis. In addition to this, value added services like transportation of liquid and hazardous product is a major task, which is arranged by the dealers. Thus the dealers are rendering after sales services and keep watch on credit worthiness of ultimate customers. Further storage is also matter of concern and governed by statutory restrictions, hence Dealers also keep storage in their premises/depot to meet urgent requirement of customers. Looking to all the above dynamics of the Chlor-Alkali business, the assessee has availed the services of the dealers whi....